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Applied Econ Quiz # 1 (Finals)

The document contains a three-part test on market structures and concepts: 1. The first part is 10 multiple choice questions testing identification of market structures like perfect competition, monopoly, monopolistic competition, and oligopoly, as well as related concepts like barriers to entry, price taking vs. price making, and market share. 2. The second part contains 10 true/false questions testing statements about market structures and concepts, including perfect competition, monopolistic competition, monopoly, oligopoly, and how competition affects prices and allocation of resources. 3. The third part asks for an essay explanation of how the Philippine Peso can depreciate relative to the US Dollar using demand and supply analysis.

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461 views

Applied Econ Quiz # 1 (Finals)

The document contains a three-part test on market structures and concepts: 1. The first part is 10 multiple choice questions testing identification of market structures like perfect competition, monopoly, monopolistic competition, and oligopoly, as well as related concepts like barriers to entry, price taking vs. price making, and market share. 2. The second part contains 10 true/false questions testing statements about market structures and concepts, including perfect competition, monopolistic competition, monopoly, oligopoly, and how competition affects prices and allocation of resources. 3. The third part asks for an essay explanation of how the Philippine Peso can depreciate relative to the US Dollar using demand and supply analysis.

Uploaded by

nilo bia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TEST I – Multiple Choice

Select the option of the item that best describes the statement.

1. A market structure in which the seller is the price taker.


 Monopoly
 Monopolistic Competition
 Perfect Competition
 Oligopoly
2. It is the obstacles to entering market which includes government regulations, size, resources and technology.
 Price maker
 Barriers to entry
 Price taker
 Regulations
3. It is one of the determinants of market structure in which seller or buyer could either be price maker or price
taker.
 Market entry and exit
 Barriers to entry
 Price taker
 Control over price
4. A market structure in which the seller is the price maker.
 Perfect Competition
 Monopolistic Competition
 Oligopoly
 Monopoly
5. A market structure that is an ideal model of a market economy.
 Monopoly
 Perfect Competition
 Monopolistic Competition
 Oligopoly
6. It is one of the determinants of market structure that identify the product either homogenous or
differentiated.
 Market entry and exit
 Barriers to entry
 Nature of the product
 Control over price
7. Sellers try to distinguish their products from similar ones.
 Pricing
 Product differentiation
 Nature of the product
 Differentiation
8. It is the reason why there is only few sellers in an oligopoly.
 High start-up costs
 High production costs
 High operating Costs
 High investment
9. The percent of total sales in the market.
 Market sales
 Percentage share
 Market share
 Percentage of the market

10. A monopoly in which economies of scale cause efficiency to increase continuously with the size of the
firm.
 Government monopoly
 Technological monopoly
 Natural monopoly
 Geographic monopoly
Test II – True or False
Write True if the statement is CORRECT; False, if the statement is INCORRECT.

1. Perfect competition gives more consumer benefits. – True


2. The market structure is the organizational and other characteristics of a market. – True
3. Monopolistic competition is a type of imperfect competition such that many producers sell products or
services that are differentiated from one another (e.g. by branding or quality) and hence are not perfect
substitutes. – True
4. Monopsony is a market structure where there is only a single buyer in a market. – True
5. In an oligopoly market structure the market is run by a small number of firms that together control the
majority of the market share. – True
6. Monopoly is a market structure where there is only one provider of a product or service. – True
7. Duopoly is a special case of an oligopoly with three firms in the market. – False
8. In perfect competition products are differentiated so no consumer preference. – False
9. One of the advantages of perfect competition is that high degree of competition helps allocate resources
to most efficient use. – True
10. Competition makes prices lower. – True

Test III – Essay


Answer accordingly.

1. Using demand and supply analysis explain how can the Philippine Peso is depreciate relative to the US
Dollar. (20 pts.)

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